Putting out the Embers (#21)

When attempting to fix an issue, we have the tendency to jump right in, suit up, grab a hose, and barge into a burning building. We put out the flames, only to leave the embers behind. Shortly afterwards, these embers flare back up, causing the flames to burn bright again. The fire returns, along with the problem. We only resolve the issue on the surface, but leave the embers to reignite at any moment.

Typically, when problems arise, there is not a formal process that organizations follow to solve those problems. Because of this, we struggle with these fires repeatedly. Most of us know that doing the exact same thing repeatedly but expecting a different result is the definition of “insanity.”

You can avoid the insanity of putting out the same fires over and over by using the Six Sigma DMAIC Methodology. When initially taking on a Six Sigma Project, you must develop a Project Charter.

“Plan your work, and then work your plan,” is the ultimate Six Sigma motto when you begin to develop the Project Charter, which is the guiding principle for the entire Six Sigma Project. The Six Sigma Project Charter contains six main elements.

1.       Business Case: This clarifies why the project is significant to the corporation. The Business Case explains why the company should support this particular project.

2.       Problem Statement: This is a short characterization of the problem the company is experiencing. The Problem Statement must be associated with the Customer’s Voice, which could be external or internal.

3.       Goal Statement: This includes the objective of this project. What is our goal? What is our target improvement? This needs to be specific, measurable, attainable, relevant and time-bound (SMART Goal). Goal Statement’s ought to be associated with the problem you’re attempting to solve.

4.       Scope: The Scope clearly outlines exactly what is involved in this project as well as what should be excluded from the project. Examples of Scope may include product groups, departments, geographical areas, etc.

5.       Timeline: Here is where the crucial milestones of the project are described. The Timeline also includes the projected end date for each of these milestones. It is common for a Six Sigma DMAIC project to include the conclusion of the following phases: Define, Measure, Analyze, Improve, and Control.

6.       Team Members: This segment includes each of the tools which are necessary to complete this project. Among the Team Members includes the Sponsor of the Project, the Key Stakeholders, the employee members, and anyone considered to be a subject matter specialist.

I relate the methodology of the Project Charter to planning a race. To further this analogy, the Project Charter helps draw the starting line as well as the finish line. Here you also specify the purpose and path of the race.

Purpose of the Race

The Business Case represents the “purpose of the race” on the Project Charter. This is the first step to understanding the necessity the project poses. Questions such as “Why is this project worth completing? Why should we complete it now? What would the consequences be if we abandoned the project?” are all answered by the Business Case.

A sound Business Case relates the project at hand to the organization’s strategic priorities (KPI’s).

·         Would this project drive business goals and initiatives?

·         Does this project have a direct impact the customer; external and internal? Will it impact the Stakeholder?

·         What can we expect of the financial benefits? Will revenue increase or costs reduce?

Below is an example of a template that can be used to assist in developing a Business Case for your Project Charter:

“From time 1 to time 2, we encounter a problem metric. With a goal of target metric, this gap of ## contributes to a Cost of Poor Quality of $$.”

Starting Line

The Project Charter’s Problem Statement is the equivalent of the “starting line.” The intent of the Problem Statement is to use metrics to distinctly outline and evaluate the current issue at hand.

Below is a Problem Statement example:

Over the past half year, 20% of our regular customers were more than 60 days overdue when their invoices were paid. In 2015, our percentage of late payments was at 10% and today our outstanding receivables has tripled to 30%. This increase disturbs our operating cash flow by $259,000.

There are two things that should never be included in your Problem Statement.

1.       Blame should never be assigned within the Problem Statement.

2.       A solution should never be offered within the Problem Statement. If you know the solution to the problem, there is no point to performing a Six Sigma Project.

An example of this would be: “Accounts are more than 60 days behind due to an outdated ERP system. We need to assess the possibility of updating our systems to the latest version.”

Finish Line

The “finish line” represents the Goal Statement. This statement defines the anticipated improvement that the project is trying to attain in succinct and quantifiable terms.

An excellent Goal Statement:

·         Is Specific, Measurable, Attainable, Relevant and Time Bound (SMART)

·         Doesn’t assign blame, assume origin, or offer an answer

·         Begins with an action word (decrease, produce, restrict, gain, etc.)

Below is a prototype of a successful Goal Statement:

Boost (<- 3="" 42="" 70="" by="" difference="" employee="" end="" from="" improved="" motivation="" object="" of="" questionnaire="" rate="" results="" sup="" the="" to="" verb="">rd

Quarter in 2005 (<- date="" end="" o:p="" projected="">

Route

The Scope of the Project Charter is comparable to the “route” of the race. Similar to the “route” outline, the Scope outlines the specific boundaries the project must remain within as well as name the resources available to the project development.

Without clear definition, the project could be susceptible to Scope Creep. This could lead to the project stalling, potentially forever. Scope Creep could be caused by change requests, upgrades, or additions that were not initially included in the original Scope. These modifications may shift the intentions of the original project, triggering defects and delays into the Scope.

It’s necessary to recognize that your Six Sigma Project Charter is like a “living document.” This means that the document will be continually improved as you develop a deeper understanding of the Project Charter. All the elements of your Project Charter are subject to change as you progress through your DMAIC Roadmap.

About Six Sigma Development Solutions, Inc.

We are Certified as an Accredited Training Organization with the International Association of Six Sigma Certification (IASSC)

“The IASSC Accredited Training Organization (ATO) designation validates Six Sigma Development Solutions, Inc. has demonstrated adequate management systems, courseware with a high degree of correlation to the subject matter contained in the IASSC Bodies of Knowledge, delivery schema consistent with such content and highly qualified instructors.”

We Provide Public Lean Six Sigma Green Belt and Lean Six Sigma Black Belt Certification Training Courses in 34 Cities across the globe.

Our Training Centers are located in: Albuquerque, New Mexico | Anchorage, Alaska | Atlanta, Georgia | Austin, Texas | Boston, Massachusetts | Calgary, Canada | Charlotte, North Carolina | Chicago, Illinois | Cincinnati, Ohio | Cleveland, Ohio | Columbus, Ohio | Dallas, Texas | Denver, Colorado | Detroit, Michigan | Dubai, UAE | El Paso, Texas | Fort Smith, Arkansas | Honolulu, Hawaii | Houston, Texas | Indianapolis, Indiana | Jacksonville, Florida | Kansas City, Missouri | Las Vegas, Nevada | London, England | Los Angeles, California | Louisville, Kentucky | Memphis, Tennessee | Mexico City, Mexico | Milwaukee, Wisconsin | Minneapolis, Minnesota | Montreal, Canada | Nashville, Tennessee | New Orleans, Louisiana | New York City, New York | Northwest Arkansas | Orlando, Florida | Philadelphia, Pennsylvania | Phoenix, Arizona | Pittsburgh, Pennsylvania | Portland, Oregon | Raleigh, North Carolina | Salt Lake City, Utah | San Diego, California | Seattle, Washington | St. Louis, Missouri | Tampa, Florida | Toronto, Canada | Vancouver, Canada | Washington, DC

We Provide Onsite Lean Six Sigma Certification Training. Some of the training's we provide are: Lean Six Sigma Black Belt, Lean Six Sigma Green Belt, Lean Six Sigma Yellow Belt, Lean Six Sigma Champions Training and Lean Certifications for Healthcare, Finance, I.T, Manufacturing, Processing, Logistics, Retail Sales and Government.

SSDSI will come to your site to train for your choice of the Lean Six Sigma Certification Levels. Onsite training is more cost effective than open enrollment training when training larger groups of team members.

Benefits of Onsite Training:

The Training is focused on Your Opportunities

SSDSI uses your opportunities in class (vs. generic examples)

You will get the experience of a seasoned Lean and Six Sigma Master Black Belt who will help mentor you while completing your Lean and Six Sigma Project

You can train up to 20 employees for one fixed cost (this cost includes course ware and the instructors travel & lodging)

Our courses are full of games, simulations, and active learning to help the adult learner

SSDSI can customize the training to meet your company’s particular training needs

Call Kevin Clay at 214-731-3176 or email at kclay@sixsigmadsi.com for more information